Fager Clinic Uses Client-Visits as Its Measure of Activity

question 293

Multiple Choice

Fager Clinic uses client-visits as its measure of activity. During February, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,250 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for February:
Data used in budgeting:
Actual results for February:

-The activity variance for personnel expenses in February would be closest to:

• A) $845 U
• B) $1,075 F
• C) $1,075 U
• D) $845 F

---

Definitions:

Compounded Monthly

A method of calculating interest where the accrued interest is added to the principal sum each month, resulting in 'interest on interest.'

Compounded Monthly

Interest on a deposit or loan is calculated each month and added to the principal, increasing the amount on which future interest is computed.

Mortgage Loan

A loan used to purchase a real estate property, secured by the property itself.

RRSP

A Registered Retirement Savings Plan, which is a retirement savings and investing vehicle for employees and the self-employed in Canada.